30 October 2014

If You Can't Beat 'Em ...

I've posted many times about students loans in America. (Check here, here, and here for a sampling.) A serious problem, most would agree. The 2005 changes to the Bankruptcy Code, which made even private student loans nondischargeable, is a particularly egregious of successful rent-seeking.

On the other hand, the bloated mass of unpaid student loans presents a grant opportunity for the shrewd investor. Go here to read an account in Businessweek about the extraordinary competition among companies  for the grand prize: "the Department of Education is expected to award a contract worth $1 billion annually to private debt collection agencies that go after borrowers who have defaulted on federal student loans." That's one billion annually.

There's more of interest but perhaps there will be some good job opportunities for those who are having trouble paying their student loans.

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